Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 22 November 2019

Abstract and Keywords

This article examines three competing views entertained by economic theory about the instrumental rationality of decisions. The first says to maximize self-interest, the second to maximize utility, and the third to “satisfice,” that is, to adopt a satisfactory option. Critics argue that the first view is too narrow, that the second overlooks the benefits of teamwork and planning, and that the third, when carefully formulated, reduces to the second. This article defends a refined version of the principle to maximize utility. It discusses generalizations of utility theory to extend it to nonquantitative cases and other cases with nonstandard features. The study of rationality as it bears on law is typically restricted to the uses made of the notion of rationality by the “law and economics movement.” Legal economists accept the traditional economic assumption that rational agents seek primarily to maximize their personal utility.

Keywords: economic theory, rationality, self-interest, utility theory, law and economics movement

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.